Coca-Cola Is Reliable, but 1 Thing Makes PepsiCo the Smarter Buy for Income Investors

When the stock market gets volatile, as it is today given the recent sell-off, investors often look for safe-haven investments. Dividend King Coca-Cola (NYSE: KO) is a consumer staples giant that fits that bill.But there are other options, and one attractive choice is a direct competitor to Coca-Cola. In fact, fellow Dividend King PepsiCo (NASDAQ: PEP) offers both a higher yield and, the biggest plus, a more attractive valuation.Coca-Cola owns one of the most recognized brands in the world, with lots going for it. It has an incredible distribution system that spans across more than 200 countries. It is a leader in the advertising space. It has a strong research and development team. And it is large enough that it can act as an industry consolidator, buying up-and-coming brands and products to fill out its portfolio. There's a reason why Warren Buffett has owned Coca-Cola within Berkshire Hathaway for decades.Continue reading

Apr 6, 2025 - 09:15
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Coca-Cola Is Reliable, but 1 Thing Makes PepsiCo the Smarter Buy for Income Investors

When the stock market gets volatile, as it is today given the recent sell-off, investors often look for safe-haven investments. Dividend King Coca-Cola (NYSE: KO) is a consumer staples giant that fits that bill.

But there are other options, and one attractive choice is a direct competitor to Coca-Cola. In fact, fellow Dividend King PepsiCo (NASDAQ: PEP) offers both a higher yield and, the biggest plus, a more attractive valuation.

Coca-Cola owns one of the most recognized brands in the world, with lots going for it. It has an incredible distribution system that spans across more than 200 countries. It is a leader in the advertising space. It has a strong research and development team. And it is large enough that it can act as an industry consolidator, buying up-and-coming brands and products to fill out its portfolio. There's a reason why Warren Buffett has owned Coca-Cola within Berkshire Hathaway for decades.

Continue reading